FIDIC has renewed and expanded a major agreement with the Inter-American Development Bank (IDB) that will now see the international funding organisation adopt the use of nine FIDIC standard contracts for the next five years. The IDB is the main source of development financing for Latin America and the Caribbean.

Under the terms of the agreement, FIDIC has granted the IDB a non-exclusive licence to refer to the nine major FIDIC contracts (see list in notes below) for projects they finance and the documents will be used in some of the bank’s standard bidding documents. The list of contracts now includes the reprints of the 2022 FIDIC Rainbow Suite, the White Book 2017, Gold Book 2008, Green Book 1999 and 2021, the reprint of Emerald Book 2023 contract for Underground Works and the Dredgers contract 2016.

The suite of contracts covered by the agreement with FIDIC covers a wide range of international construction and infrastructure work and the renewed contract with IDB represents a further key endorsement for FIDIC contracts from a major international funding organisation, following similar agreements signed with the World Bank and other multilateral development banks around the world.

FIDIC president Catherine Karakatsanis said: “I am delighted that the IDB has renewed and expanded its agreement with FIDIC to be used as an accepted form of contract for use with their standard bidding documents. This is another major development for FIDIC and we hope that this move will create more certainty in the market, as by facilitating the use of FIDIC contacts on major projects the IDB is saying that they endorse the fair and balanced approach that these documents offer to parties on major construction contracts.

“The certainty that FIDIC contracts bring makes it easier to get projects underway, as many of the common commercial risks are clearly addressed in the contracts and all parties understand their obligations and responsibilities. FIDIC looks forward to the IDB’s continuing endorsement of these contracts providing additional reassurance to the financial, institutional and private equity investors operating in the global market to adopt the use of FIDIC standard procurement contracts as an effective tool to mitigate the risks associated with major infrastructure projects and assets.”

Javier Davila Perez, division chief of the IDB’s operations financial management and procurement services office, commented: “The IDB equips projects with modern project management tools to enhance outcomes, ensuring institutional strengthening and tailored support. FIDIC’s adaptable tools aligned with our procurement policies, ensure fair risk distribution. With a fit-for-purpose approach and a commitment to transparency, the renewal of the FIDIC licence reinforces the IDB’s role in advancing infrastructure in Latin America and the Caribbean.”

The nine FIDIC contract documents covered by the FIDIC/AIIB agreement are as follows: -

1. Conditions of Contract for Construction for Building and Engineering Works Designed by the Employer ("Red book"), Second edition 2017, Reprinted 2O22 with amendments;
2. Conditions of Contract for Plant & Design-Build for Electrical & Mechanical Plant & for Building & Engineering Works Designed by the Contractor ("Yellow book"), Second edition 2017, Reprinted 2O22 with amendments;
3. Conditions of Contract for EPC Turnkey Projects (Silver book), Second Edition, 2017, Reprinted 2022 with amendments;
4. Client/Consultant Model Services Agreement ("White book"), Fifth Edition 2017;
5. Conditions of Contract for Design, Build and Operate Projects ("Gold book") First Edition 2008;
6. The Short Form of Contract. ("Green Book"), First Edition, 1999;
7. The Short Form of Contract ("Green Book"), Second Edition, 2021;
8. Conditions of Contract for Underground Works (Emerald book), First Edition, 2019, Reprinted in 2O23 with amendments; and
9. Form of Contract for Dredging and Reclamation Works, Second Edition, 2016.